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I have owned 2 E34 models over the past decade, 89 535i and 95 525iT with total of 400K miles. I run Mobile One 15W-50 synthetic in the summer and Castrol Syntec or Mobil One synthetic 10W-40 in the winter. The 15W-50 oil protects better than newer, thinner oil formulations that are made with fuel economy as the priority over engine life. Conventional wisdom says to use BMW factory anti freeze in the cooling system and you can't go wrong with this. You can however, use the newer formulations from Prestone and others as they are compatible with BMW requirements. This was not true 10 years ago. Red Line synthetic D4 ATF is one of the best automatic transmission fluids to use in the E34. Cheaper than the factory fluid and still a very high performance oil for automatic transmissions. I buy my Red Line from Summit Racing in one gallon jugs.
If you plan to keep your car a long time, the better synthetic oils are a very good investment.
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1995 525iT w/S52 swap and 5 spd manual conversion
1997 328iC
92 Celica All Trac Turbo
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